Relaying technique has been developed considerable attention in response to improve reliability and to extend wireless network coverage. One of conventional relaying technique, incremental relaying which uses limited feedback from the destination has attracted research attention because of performance and minimization of relay usage. Moreover, optimal power allocation for various relaying schemes have been recently studied due to limited battery lifetimes in emerging wireless applications, e.g. sensor networks. In this paper, for proposing suitable relay scheme in the practical communication and improving performance of conventional relaying, we apply hybrid relaying to incremental relaying, called hybrid incremental relaying. This scheme adaptively uses the amplify-and-forward and decode-and-forward whether a relay decodes successfully or not. This paper derives outage probability and bit error probability of hybrid incremental relaying. We also compute optimal power allocation for proposed scheme and simulation results show a noticeable performance improvement compared to the equal power allocation scheme.